Credit Score: If you are using credit card or paying loan EMI, then there is big news for you. A decision of the Reserve Bank of India (RBI) is going to prove to be a game changer for you. Under this, from April 2026, people will not have to wait for weeks for the credit score, rather your credit score will be updated every seven days.

How often will credit scores be updated?

According to the new rule, now credit scores will be updated every seven days instead of twice a month. This change is being made under RBI’s draft ‘Credit Information Reporting (First Amendment) Directions, 2025’. Under this proposal, all Credit Information Companies (CICs) will update borrower data five times a month – on 7th, 14th, 21st, 28th and last day of every month.

The purpose of this step of RBI is to make a big change in the way of reporting and updating credit data. This will especially benefit those people whose loan is stuck merely because the bank is waiting for the latest credit score report.

What will be the change?

Earlier, banks or financial institutions had to send data to credit bureaus like CIBIL, Equifax, Experian and Crif High Mark once or twice a month. Now, even though banks and NBFCs will send the complete set of credit records once a month, they will also have to update major changes at regular intervals such as new loan or newly issued card, closed accounts, repayment updates, any change in borrower details and any change in loan classification, etc. This means that if someone closes a credit card, repays a loan or improves their repayment track record, the change can be reflected in their credit report within a few days.

It has many benefits

• There will be no need to wait long for improvement in credit score after EMI or loan repayment.
• The faster the credit score improves, the faster the loan approval will also be.
• The effect of updating data from time to time will also be visible on credit health, which will help you in getting loan at better interest.
• If the bank has your latest updated data, then you will not face any problem while applying for a new card or loan.

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Credit Score: It is very important to have CIBIL score to take a loan from the bank, without it you may have to face many problems in getting the loan. Actually, you can get loan even without CIBIL score. In this the bank checks your background and payment history. However, if the CIBIL score is good, it is very easy to get a loan.

What is CIBIL score?

CIBIL score is also called credit score. It is a 3 digit number between 300-900, which tells whether you have ever used a credit card or taken a loan. If yes, then how responsibly have you returned the loan money or made EMIs or payments?

Generally 300 is considered the worst score and 900 is considered the best. If the score is good, the loan is approved quickly, that too at a good interest rate. But many times the loan request is rejected even if the CIBIL score is good. Suppose if your CIBIL score is 750, then it will be considered good. But many times the loan gets rejected even if the CIBIL score is 750. Do you know what is the reason for this?

debt-to-income ratio

Your debt-to-income ratio is a big factor behind this. The bank wants that less than 40 percent of your monthly income should be spent on EMI. Financial advisor Ritesh Sabharwal tells that if you have a salary of Rs 1 lakh and Rs 45,000 goes in EMI, then your DTI will be 45 percent. In such a situation, even if your CIBIL score is 750, the bank will refuse to give you a loan because the bank will consider you an excessive borrower. High DTI means that you may face difficulties in repaying the loan, due to which the bank becomes alert.

Applying for loan more than once

Applying for credit cards or loans multiple times in a short period of time also makes matters worse. If you have requested for a loan more than three times in three months, then the bank looks at it from a negative perspective. The bank sees signs of your being under financial pressure and sees the danger of financial risk. Many times, people who change jobs frequently face difficulty in getting a loan.

How to improve?

Sabharwal says that you can increase your chances of getting a loan by keeping the debt-to-income ratio below 40 percent, maintaining a record of staying in the same job for a long time, using 30 percent of your credit limit, making regular loan payments from time to time and not applying for loans again and again.

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Expensive brands and luxury items for today’s Jane Ji and Millennials are no longer far away. Earlier, where designer handbags or branded shoes were purchased only on special occasions, now the youth is making their own by purchasing them in EMI. This trend has increased this trend on social media showing glamorous lifestyle and pressure from others. In small installments of the month, the purchase of expensive goods gives satisfaction, but the financial danger is also hidden behind it. Experts say that uncontrolled EMIs can affect savings and financial security.

Luxury shopping and credit culture

Experts say that nowadays the purchase of expensive goods from EMI has become easier. Although it gives happiness at that time, it can also put financial pressure in the long run. The increasing trend of credit can be beneficial for the Indian economy, but uncontrolled shopping at the individual level can prove to be dangerous.

Social media and pressure

Social media has a major influence on Jane ji and Millennia. Constant videos of magnificent lifestyle and pressure from others inspire the youth to buy luxury on EMI. Experts believe that today’s generation wants to experience expensive goods immediately with the mindset of Live in the Now.

The correct meaning of luxury saving or status

Earlier Lakjari meant savings but now it has become an experience, status and sharing thing. High class dining club or premiere events are examples of this change. Where people are spending money for expensive experience. The same EMI facility seems attractive from far away but the burden of many installments can increase financial pressure. The consistent spending weakens the habit of savings and the credit score may be affected if there is a delay or lapse in repaying the debt. Apart from this, the habit of more expenses can also reduce mental stress and self -esteem.

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No cibil score for loan: Whenever you take a loan for a car, bike or house, your civil score is first seen. If it is not well, then the bank is refused to give a loan. But such people have now been given great relief from the government. At present, the rule of banks is that if your civil score is bad then either you will not be able to get a loan from the bank. Actually, a big scale of loan is a civil score. The civil score of anyone is between 300 and 900. Based on this, his performance is decided.

What happens with civil score?

The more the civil score comes to close to 900, the more people get help in increasing the loan amount from taking loans. It can also be understood that if someone’s score comes around 300 or below 600, then any bank can take care of giving loans. But now this news is coming that in the case of loan, the civil score will not be considered as a criterion because the government has said in Parliament that if someone’s civil score is bad then the bank cannot refuse to give the loan.

Civil score is bad or low, but banks will not refuse to give loans to people even under those circumstances. If someone is applying for a loan for the first time, then in that case the bank will not ask for its civil score.

What will be the benefit?

In fact, Union Minister of State for Finance Pankaj Chaudhary, while speaking about this in the Lok Sabha, mentioned the rules of the Reserve Bank of India. The RBI has not mentioned any minimum number of civil scores anywhere in its rules. His statement means that RBI does not say anywhere that it is mandatory to have such a civil score to take a loan.

This dispute of civil score is old. CIBIL i.e. Credit Information Bureau became so popular that people came to know it in the name of civil. Its real name is CIR i.e. Credit Information Report.

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Loan guarantor: Many times a close friend or family member needs to take a loan, then we become guarantors without any hesitation. If you also do this, then be careful immediately, otherwise doing so can be heavy on you.

Becoming a guarantor means that you are guaranteed to repay the loan being taken. If your credit rating is good, then considering you a guarantor, a loan is also passed without any inattention.

Your credit score can go wrong

Now the responsibility of the person taking the loan is to pay the loan installments with interest from time to time. If he is unable to do so, then the first notice is sent to the guarantor as a defaulter and they are expected to get the loan amount.

This default can also affect your credit score, so before becoming a guarantor, it should always be kept in mind that the person you are becoming guarantors, you know well and you are so confident that they are able to pay loans on time. If your credit score goes wrong, then in the coming time you may have trouble taking loan or you may get a loan at a higher interest rate.

You will be responsible

It is not so easy to become a guarantor because the bank will count this loan in your total credit limit. If a person borrowing in a situation is called bankrupt, even if he is exempted from repaying the loan, the guarantor will have to pay the entire amount with interest. It is also not easy to get back from becoming a guarantor, when the loan is completely paid or the bank does not give a discount in writing.

Benefits of becoming a guarantor

However, becoming a guarantor also has some benefits. One, it helps someone close to you. It may be that your credit score will also be upgraded. If you become a guarantor for a responsible person and he repays the loan on time, then it will affect your credit score. In such a situation, if you want to become a guarantor for someone, then you should be of course, but keep checking your credit score from time to time or take advice of an expert.

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